(MEBG) – The first Bahraini life insurance company will officially open on October 1, 2000. According to a report in Gulf Daily News, the Bahrain National Life Assurance Company, a subsidiary of Bahrain National Holding Company (BNH), is soon to begin operations with an authorized capital of BD6 million and an initial paid up capital of BD1.5 million.

The new company will offer group and individual medical, pension and life insurance, as well as children’s education financing plans, which have been offered up to date solely by foreign companies.

Mahmood also argued that advances in medicine in the past decade have lead to extended longevity, which has made it increasingly difficult for governments around the world to provide adequate care for their senior citizens. He predicts that in Bahrain the lack of social insurance problem will worsen in the coming 15 to 20 years, where citizens will have to make use of their own savings and insurance plans.

Both individuals and companies will be expected to provide insurance and pensions for themselves and for their employees. For that reason, the new company plans to tailor group pension plans for Bahrain companies who wish to make themselves more attractive in the eyes of potential good employees.

The company’s main focus will be life insurance targeted mainly to Bahrainis. It also plans to develop an Islamically structured life plan, which will also be the first of its kind in the country. “We are working on a feasibility study of the demand for an Islamic life insurance product,” said Waleed Ahmed Mahmood, BNI senior manager of business development.